TP-Link, China’s leading Wi-fi router manufacturer, has laid off most employees at a chip development unit in Shanghai amid setbacks, according to people familiar with the matter and local media reports.
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Lianzhou International, known globally as TP-Link Systems and the overseas arm of the router maker, cut the majority of workers at its Shanghai-based chip unit last week, according to two people with knowledge of the situation, who declined to be named because they are not authorised to speak to news media.
The lay-offs, first reported by Chinese media on Saturday, primarily affected employees working on the front-end module of Wi-fi chipsets, spanning roles such as algorithms and verification, according to the reports.
The total number of affected employees remains unclear. TP-Link did not immediately respond to a request for comment on Monday.
One source said the cuts followed difficulties in chip development, with one product failing to pass final testing.
The move signals a downsizing of TP-Link’s overseas business, which comes months after the US government reportedly launched a national security probe into the company in December.